"Pay-To-Go-Away" From State And Local Pensions

August 20, 2014 5:40 PM

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You’ve heard of “pay-to-play,” sometimes called pay-for-play, which is a phrase used for a variety of situations in which money is exchanged for the privilege to engage or play in the game. The National Football League has asked artists Rihanna, Katy Perry, and Coldplay, under consideration for the Super Bowl halftime show, to “pay-to-play” the high profile gig.

In the mundane investment arena, “pay-to-play” refers to the common practice of having to pay an influential intermediary—such as an investment consultant gatekeeper to a pension or a politician—to get hired to manage plan assets.